Drivers have a long list of needs when it comes to choosing the best company car for their job. Not only does it need to be low on benefit-in-kind (BIK) taxation, they’ll want a car which is comfortable for long journeys. It should be loaded with tech to ease away daily-driving stresses on the way to and from work. And, if it is an electric car, it should charge really quickly so they can get back on the road as soon as possible.
Beyond this, the big consideration for company car drivers is the BIK you’ll pay. BIK (Benefit-In-Kind) is a tax on perks that aren’t part of your salary – a company car being one of these. The amount of BIK you’ll contribute is determined by:
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Your income tax rate (either 20- or 40%)
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The amount of Co2 emissions the car officially puts out while driving
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The car’s P11D value - This is the vehicle’s list price plus any optional extras and also VAT, but excluding road tax and the first registration fee.
It’s this BIK calculation, plus changes related to emissions outputs, that has seen diesel-powered cars fall from favour as company cars. They once used to be the default choice, but now the plain truth is that they’re not as wallet-friendly to run as a company car. So, with all that in mind, we’ve come up with a list of the best company cars you can drive in 2023. Our picks are a mix of hybrids (HEVs), plug-in hybrids (PHEVs) and electric cars that should suit your company-car needs, whether you do long motorway journeys on a regular basis or whether you’re an urban-based daily commuter.
1. Tesla Model 3
Type: EV | CO2: 0g/km | BIK: 2% (2022/23, 2023/24) | Best For: Long-Distance Drivers
Tesla's Model 3 is a strong choice on this list. Due to the fact it is pure electric, you could argue that a Model 3 lease would be perfect for city commuters, especially those who live near congestion-charging and low-emissions zones. And it would be, undoubtedly, but the Tesla’s real strength is a driving range of up to 374 miles in one hit on the Long Range model – as well as super-fast charging at up to 250kW, allowing for up to 172 miles of range in just 15 minutes of connection on a Tesla Supercharger. Not only that, but the car can do 0-62mph in 4.2 seconds, so it’s mighty quick as well as super-clean.
2. BMW 330e
Type: PHEV | CO2: 31g/km | BIK: 12% (2022/23, 2023/24) | Best For: Long-Distance Drivers And City Commuters
This means the 3 Series is adept at whizzing silently around city streets on electric driving mode, which it can do for up to 41 miles as a four-door Saloon. It is also an excellent drive when cruising along motorways on its petrol engine.
Fuel economy is said to be 138mpg, but you obviously need to charge it regularly and drive in EV mode to hit this sort of number. In reality the figure is around 50mpg as a more truthful figure, which is still pretty impressive for such a well sorted car.
3. Skoda Superb iV
Type: PHEV | CO2: 31g/km | BIK: 12% (2022/23, 2023/24) | Best For: Long-Distance Drivers
The Skoda Superb is absolutely imperious on the motorway, where its smooth ride and excellent refinement make it one of the strongest cars going in any class. For the lowest BIK rate, we’d recommend the plug-in hybrid version. This model pairs a 1.4-litre TSI petrol to an 85kW (115hp) electric motor, for 218hp overall and gives you 35 miles of all-electric driving.
4. Volkswagen ID.4
Type: EV | CO2: 0g/km | BIK: 2% (2022/23, 2023/24) | Best For: City Commuters
You could look at leasing an ID.3 for a less expensive, smaller hatchback, but we reckon the Volkswagen ID.4 SUV is a more appealing company-car. Pick a model with the larger 77kWh battery and you can go up to 310 miles on a single charge, which might mean a city commuter could drive to and from work all week without ever plugging it in once. You get all this while enjoying the lowest BIK rates in the process, as well as something that can double up as a practical family car with its spacious cabin and 543-litre boot.
5. Kia EV6
Type: EV | CO2: 0g/km | BIK: 2% (2022/23, 2023/24) | Best For: Long-Distance Drivers
The incredible all-electric Kia EV6 is a fantastic choice for a company car. It uses the latest cutting edge EV technology, with its 800-volt onboard electric system allowing a 0-80% battery charge in just 18 minutes on its maximum 350kW connection. Not only can you get back on the road quickly, but the EV6 has futuristic exterior styling and one of the nicest, most well-appointed cabins in the business.
With a maximum driving range of 328 miles from its 77.4kWh battery, the manufacturer’s unbeatable seven-year warranty and the lowest BIK possible of just 2%, and you can see why the Kia EV6 is such a compelling company car option.
6. Toyota Corolla Hybrid
Type: HEV | CO2: 111g/km | BIK: 27% (2022/23, 2023/24) | Best For: Long-Distance Drivers And City Commuters
We’d recommend the bigger 2.0-litre Hybrid engine, as it’s more pleasurable to live with than the 1.8, and the Corolla’s ‘self-charging’ status means you don’t need to think about getting the best economy from it. The Corolla does it all for you, without ever needing to be hooked up to the mains.
While prioritised for long-distance drives, this self charging works well in cities too. That’s where this Toyota will run on its electric power only for most of the time as it can only achieve this when travelling at low speeds or coasting.
7. Volvo XC40 T5
Type: PHEV | CO2: 47g/km | BIK: 14% (2022/23, 2023/24) | Best For: Long-Distance Drivers And City Commuters
The Volvo XC40 is one of the best premium SUVs available, if not THE best. So adding an advanced plug-in hybrid drivetrain to the range is hardly going to hurt matters.
Especially when the small 10.7kWh battery pack does not reduce on boot or passenger space – both are exactly the same for the PHEV as they are on the petrol XC40s.
The T5 model has a charismatic 1.5-litre three-cylinder turbo petrol and a 60kW (82hp) electric motor for a combined 262hp, so it’s quick. The zero-emission driving offered here is 28 miles. And whilst that is a little lower than some rivals and results in slightly elevated BIK tax bills, it should be enough to do a short daily commute on electric power alone.
8. Vauxhall Corsa-e
Type: EV | CO2: 0g/km | BIK: 2% (2022/23, 2023/24) | Best For: City Commuters
As a fully electric car, the Vauxhall Corsa-e qualifies for the lowest rates of BIK available, making it perfect for urban business commuters. Its 50kWh battery pack allows for up to 209 miles of driving on a single charge, which should be more than enough for most people’s weekly urban commuting needs. When you do need to plug it in, the Vauxhall can charge at a rapid 100kW DC speed, meaning shorter charging times. This Corsa is a great-looking car inside and out, and it’s really cheap to lease which makes it an ideal company car for 2023.
9. Ford Mustang Mach-E
Type: EV | CO2: 0g/km | BIK: 2% (2022/23, 2023/24) | Best For: Long-Distance Drivers
There are five models of Ford’s daring Mustang Mach-E electric SUV to choose from, including an outrageous GT flagship which does 0-62mph in 3.7 seconds.
For a company car, you’ll want one of the two regular models with the larger 98.7kWh ‘Extended Range’ battery pack. This is best employed on the single-motor Rear-Wheel Drive (RWD) model, which will go up to 379 miles on a single charge – the longest electric driving distance on this list.
Realistically, you should be able to get 250-300 miles out of the Ford Mustang Mach-E on every business trip. Plus it’s also a large and prestigious SUV that you can enjoyably drive as the main family vehicle on the evenings and at weekends. For you keener drivers, the even better news is that the Mustang Mach-E is a hoot to drive on the right roads.
10. Range Rover Evoque P300e
Type: PHEV | CO2: 32g/km | BIK: 8% (2022/23, 2023/24) | Best For: Long-Distance Drivers And City Commuters
The Range Rover Evoque P300e is a petrol-electric plug-in hybrid with two tricks up its sleeve. First, it is one of the very few PHEVs which can charge on a DC connection of up to 32kW, meaning super-fast battery charging times.
Second, its manufacturer also claims 41 miles of electric driving range, which slightly trims its BIK requirements to even lower levels. As it’s an Evoque, it looks stylish and desirable on city streets as a weekly commuter’s choice of wheels. It is capable of driving to and from work in zero-emissions silence with daily charging, but the P300e will also do the long-haul drives well thanks to its efficient petrol engine.
Other Great Company Car Options:
- Audi A3 TFSIe / A6 TFSIe
- BMW iX3 / X5 xDrive45e
- Ford Puma MHEV
- Hyundai Ioniq 5
- Peugeot 3008 Hybrid / 508 Hybrid
- Skoda Octavia iV
Company Car FAQs
Is Petrol Or Diesel Better For A Company Car?
Until recently, diesel was the preferred choice for a company car. Nowadays, however, changes to emissions laws have altered various taxes and running costs, including BIK, which means petrol is probably going to be a better bet.
Is It Financially Better To Have A Company Car?
There are a lot of benefits to having a company car instead of using your own vehicle for work purposes. For example, an employer will typically cover almost all of the costs of a company car, including its monthly leasing fees, its insurance, its servicing and its maintenance. Some companies will also even provide a fuel card for business use too.
What Is The Best Electric Company Car?
There are several very good electric company cars with large, long-range battery packs, the capability for ultra-rapid charging (100kW DC or above), and the sort of in-car comfort and luxury that you’d expect of a good business vehicle. Five of our favourites include the BMW i4, the Ford Mustang Mach-E, the Hyundai Ioniq 5, the Kia EV6 and the Tesla Model 3. For more information on the best corporate EVs, take a look at our guide to the best electric cars for business.
Is It Better To Have A Company Car Or Company Car Allowance?
It is if you’re a higher-rate taxpayer or you do considerably more than 10,000 miles a year. However, there are instances where it may be better to take a company car cash allowance instead, and we’ve got a full guide on that very subject to help you make up your mind. Take a look at our guide to cash allowance vs company car to find out which is right for you.
To find out more about leasing and how it works, head over to our leasing guides section. Or, if you’re ready to look for your next car, check out our unbeatable business car lease deals and cheap car leasing offers.
